MSE News: Do you know your second-hand car’s history? Beware logbook loans

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If you're looking to buy a second-hand car, you may be at risk of unwittingly inheriting debts from the previous owner ...

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Do you know your second-hand car’s history? Beware logbook loans



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vikingaero

We should enact a law that makes cars subject to a LBL display a huge difficult to remove sticker. Removal of the sticker would be an offence and both the vendor and LBL company would be jointly liable in the event of a fraudulent sale. That would sort the LBL market out in an instant.

Pincher

This is like a "lien" on a house as recorded with the Land Registry. Why not get the DVLA to provide a facility to register a "lien"?


The problem is, the scum that registered a lien will refuse to lift the lien until you paid a release fee, and even then take their sweet time doing it.


So we have to pay the DVLA first, which gets a confirmation from the lender the amount is correct, so that the lien is lifted before money is transferred to the lender. It's a good little earner for the DVLA, I would have thought.

minislim

do log book loans show up on a hpi or history check?

GooliesOfFire

Not always. It won't show if it's not reported.

Aquamania

minislim wrote: »

do log book loans show up on a hpi or history check?

This is what I was wondering.

For as long as I can remember, there has been an issue with some cars being sold with outstanding finance, and the advice has always been to get it HPI checked before handing over your money.

It doesn't matter what type of finance agreement it is that is attached to the vehicle, HPI will spot most of them, and even if it doesn't, it will still protect you up to £30k

http://www.presscentre.hpicheck.com/buying-advice/dont-be-caught-out-by-bill-of-sale-loophole/

GooliesOfFire

Don't be so sure they would pay you that £30k back.

Aquamania

GooliesOfFire wrote: »

Don't be so sure they would pay you that £30k back.

No, I didn't say they would pay you £30k back - if you read the link, they offer a guarantee worth up to £30k.

Terms apply.
e.g. you need to have made reasonable attempts to contact the seller and resolve the issue and recover such loss. (unless the police have told you not to)

GooliesOfFire

I wonder how safe buying from a dealer is. If the car is involved in unreported logbook loan and is taken away by bailiffs I suppose getting money back will be easier.

minislim

my suspicions where correct then.

but the securing of a log book loan on a car should really still go back to the person who took out the loan. not the car.

jimjames

minislim wrote: »

do log book loans show up on a hpi or history check?

You should be protected even if they don't but the biggest thing is never to buy a car without the V5. You only have to see some of the posts on here with all manner of excuses why the owner doesn't have a V5. SOme may be genuine but there is no way I'd buy any car where they couldn't provide that document. Ok, so some may be fraud where they have got replacement V5 while under a loan but the vast majority just try their luck and sell without it.